Accounting Discussion Questions

“Stock Reacquisition” Please respond to the following:

• From the e-Activity, briefly outline the details of the stock reacquisition, and give your opinion of whether or not the stock reacquisition created value for the corporation that you researched. Provide a rationale to support your opinion.
• Imagine that you are conducting a study session with your colleagues, and they are unsure of the reasons why a company would reacquire its own stock. Explain the main reasons why corporations repurchase their own stock, and analyze the two (2) methods geared towards accounting for the repurchase of stock. Give your opinion of the method that you would prefer the most. Justify your response.